Schedule 80 / 20 Related-Party Expenses - Illinois

What Is Schedule 80/20?

This is a legal form that was released by the Illinois Department of Revenue - a government authority operating within Illinois. As of today, no separate filing guidelines for the form are provided by the issuing department.

FAQ

Q: What is Schedule 80/20?
A: Schedule 80/20 refers to a specific schedule used for reporting related-party expenses in Illinois.

Q: What are related-party expenses?
A: Related-party expenses are expenses incurred by a company that involve transactions with entities or individuals that have a close relationship with the company, such as subsidiaries, affiliates, or owners.

Q: Why is Schedule 80/20 used?
A: Schedule 80/20 is used to ensure transparency and accuracy in reporting related-party expenses and to prevent tax abuse or avoidance.

Q: Who is required to file Schedule 80/20?
A: Companies operating in Illinois that have related-party expenses exceeding certain thresholds are required to file Schedule 80/20 with their tax return.

Q: What information is included in Schedule 80/20?
A: Schedule 80/20 includes details of the related-party transactions, such as the nature of the expenses, the names of the related parties involved, and the amounts paid or received.

Q: What are the consequences of not filing Schedule 80/20?
A: Failure to file Schedule 80/20 or providing false or incomplete information can result in penalties and additional tax liabilities for the company.